Should I risk it?

[Anonymous]

I'm in DEEEEEEP.  Due to life taking it's crazy turns I now owe about $50,000 in CC's.  I have no Late's and can still pay the minimums plus some.  The question is this...  Do I contact a cc account that has a $26,000 balance @ 5% interest and ask them to put me on a payment plan so I can get a reduction in the rate, and therefore be able to dig myself out faster? Interest on that much cheese is about $125.00 per month.

If I do so, I am very fearful of getting whacked with the universal default nonsense and having my other four cc's go from very low rates to very high rates.  How much negotiation do I have to ask that they remove any negative reporting from my CR after the debt has been repaid (in writing of course)?

With no late's and about 10 years of solid history I'm at 687 for all three CB's.  Obviously, the thing that's holding me down is my debt to CL.

How does one get in this position you ask....  LIFE throwing every last thing at you in a matter of months.  New house that's not worth what I paid and all the cost of a new home, new baby, job loss then ill wife, then job gain at half the income, and on and on.  My new motto is:  Debt happens to good people.

Thanks all!!!!

[Creditaddict]

5% FIXED? That sounds pretty fabulous to me.

Why ruffle the water, the only way you are going to see better rates most likely in my opinion is to join a credit counseling company and close out all your accounts and go that route which will probably trash your credit in the process.

If you can afford your payments plus some, I would get a good debt calculator like whatsthecost.com and pay your 4 accounts that way to get out as fast as possible. 

[Anonymous]

I can't answer your question about the AA other cc might take.

I did want to tell you your not alone and I wish you the very best luck. I lost my job for 9 months in 2007 and had to move 2000 miles to get a comparable job. I ran my credit up supporting 2 houses, because my kids wanted to finish high school. I have just started to dig out and it's a struggle. Best of luck.

[Anonymous]

CreditA-----Sweet calculator! You get a Kudo for that.

[mamalawery]

depending on what bank your 5% card is through, you may not be able to get lower than that. i can tell you that if it's boa their payment plan will not help. that plan is trying to get people's rate down to what yours is.

if you go thru a debt management company the accts will get closed, but it also will say on your cbr's that you are on a pymt plan. if you do each card seperately, it shouldn't.

good luck!

[Anonymous]

I guess I should read the fine print of the fixed rate.  my 2 Citi cards just raised their rates due to "current economic conditions"  I guess they need a bailout by their good customers... HA.

I beleive that the rate was a 5% fixed for the life of the transfer.  Do you think they could change that?

[Anonymous]

Thank you for your words.  It seams that we are all getting squeezed.

[Anonymous]

It is BoA.  What do you mean do each card separately?  I was thinking of informing BoA that I want to go on a payment plan and keep paying the others down but I am in fear of the others raising their rates due to me going on a payment plan.  What is the likelihood of that happening? Thanks

[Anonymous]

I hat to ask this because I was brought up to be honest and everything free comes with a price.... But I'm getting sick, as I'm sure all of you are, that people/ companies are getting bailed out because they choose to versus the people that are truly in need.

What would be the ramifications if I "chose" to not pay them back?  Can I call their bluff and state to them in a letter that I no longer want to pay because I need a bailout?  Will they settle with me even though I've never missed a payment and never been late?  Will they even go down that road because I'm not late or in default? 

And.... Will I feel like (bleep) because I didn't pay my obligation?

Thanks all.  This is one of the better sights on the entire web because of the teamwork that's out here.  I have made great progress in a short period of time with a lot against me.  I think I would like to post how I did it or how I'm doing it once I see a significant dent in my forward progress.  Thanks all!

[FretlessMayhem]

If you choose not to pay them back, I'm sure a judgment and wage garnishment would happen quickly on that kind of balance. Plus, years of trashed credit to go along with it.

You'd be better off trying to negotiate a payment plan as you said previously.